Oei Hong Leong net worth $300 million but can pay $1 BILLION loss

[besotted]

Home > Breaking News > Singapore > Story
May 19, 2009
Oei sues Citigroup

Businessman claims bank gave him an inaccurate picture of his trading exposure
By Lee Su Shyan, Assistant Money Editor

Mr Oei claims the bank sent him conflicting reports on his exposure. -- ST PHOTO: WANG HUI FEN

LOCAL businessman Oei Hong Leong - dubbed the 'man with the Midas touch' - lost a whopping $1 billion on foreign exchange and US Treasury bond transactions last year.

While he has fully paid off these losses, he is now suing Citigroup's private banking arm in the High Court for negligence and misrepresentation, legal documents seen by The Straits Times reveal.

Mr Oei claims that the bank - with which he has a 30-year relationship - repeatedly gave him an inaccurate picture of his trading exposure, causing him to take on more positions than he would have otherwise done so.

When he knew the full extent of his exposure, he felt he had no choice but to close his positions - at an extremely volatile time last October - thus suffering massive losses.

It is not clear how much of a beating Mr Oei's net worth has taken, but he was ranked Singapore's 29th richest man by Forbes last year with a net worth of only US$210 million (S$308 million). Forbes bases its listing on stakes in publicly traded companies and in private company filings.

Ironically, Mr Oei has become the latest high-profile victim of the financial crisis because he was trying to reduce his exposure.

In 2007, he believed that the global economy would experience a downturn and decided to trim his trading positions, his statement of claim says.

Meanwhile, he told his private bankers that he wanted to maintain a margin surplus of about US$100 million.

This is cash placed with a bank and clients can trade up to several times that amount. If the trades run up losses, this margin has to be topped up.

Following a change of relationship manager last year, Mr Oei dealt mainly with two assistants in the private banking department, whom he would call to check on the balance on a daily basis.

Read the full story in The Straits Times today.

[email protected]

 

[Meltdown]

Welcome to the 2nd Great Depression!

If Temasek can't recoup their billions in losses from the big time Mafioso type criminals on Wall Street & the District of Criminals, how can Mr. Oei claim his losses from the same bunch of legalized criminals? It's a dog eat dog world. The bigger dogs eat the smaller dogs. The smaller dogs eat the peasants. The peasants eat Hawker Centre foods & Maggi mees. That's how the survival of the fittest & evolution works.

 

[tonychat]

Welcome to the 2nd Great Depression!

If Temasek can't recoup their billions in losses from the big time Mafioso type criminals on Wall Street, how can Mr. Oei claim his losses from the same bunch of criminals? It's a dog eat dog world. The bigger dogs eat the smaller dogs. The smaller dogs eat the peasants. The peasants eat Hawker Centre foods & Maggi noddles.

YOu should read the book by Robert Kiyosaki Title " If you want to be rich and Happy, Do not go to school"

And you will understand how this Dog and Dog world comes about, a very sinkified way of doing business.

 

[Meltdown]

YOu should read the book by Robert Kiyosaki Title " If you want to be rich and Happy, Do not go to school"

And you will understand how this Dog and Dog world comes about, a very sinkified way of doing business.

If you understand how the legally corrupt global financial sytem really works, you can make tonnes of money in the market. I'm not kidding. Of course it helps to be able to do fundamental & technical analysis in addition to be able to read the disinfo coming from the financial media like CNBC.

 

[shOUTloud]

YOu should read the book by Robert Kiyosaki Title " If you want to be rich and Happy, Do not go to school"

And you will understand how this Dog and Dog world comes about, a very sinkified way of doing business.

wahaha, still Robert Kiyosaki ... wahaha he is last century lah. One of the things he promoted was real estate. Wonder what is he doing with his properties now.

tonychat doing Amway in Thailand? wahaha

 

[cass888]

I think you're missing the original poster's point. How does a person who claims his net worth to be $300 million pay a $1 billion debt? And is not even reduced to poverty.

Welcome to the 2nd Great Depression!

If Temasek can't recoup their billions in losses from the big time Mafioso type criminals on Wall Street & the District of Criminals, how can Mr. Oei claim his losses from the same bunch of legalized criminals? It's a dog eat dog world. The bigger dogs eat the smaller dogs. The smaller dogs eat the peasants. The peasants eat Hawker Centre foods & Maggi mees. That's how the survival of the fittest & evolution works.

 

[Meltdown]

I think you're missing the original poster's point. How does a person who claims his net worth to be $300 million pay a $1 billion debt? And is not even reduced to poverty.

Forbes net worth estimates are usually not accurate. They calculate a tycoon's net worth based on public records regarding his stakes in public companies & private filings. Forbes doesn't have access to his bank accounts both onshore & offshore, private businesses/investments both onshore & offshore that are legally structured to avoid his name from appearing on public record, investments in public companies onshore & offshore that are below the legally required reporting threshold, & etc..

The $300M net worth was given by Forbes, not Mr Oei or the Straits Times. It's obvious that his net worth was over $1B in order to pay off his $1B debt.

 

[kulgai]

I think you're missing the original poster's point. How does a person who claims his net worth to be $300 million pay a $1 billion debt? And is not even reduced to poverty.

Let me give u an example:
Total assets: $4 b
Total loan: $3.7b (total credit line fm various banks:$5b. Bal line $1.3b)
Therefore net worth: $300,000.
Still can use the bal. line of $1.3b to pay $1b losses.
Makes sense?
Not entirely but close to actual scenario becos his actual net worth & actual losses as reported may not be entirely accurate in the first place

 

[cass888]

Let me give u an example:
Total assets: $4 b
Total loan: $3.7b (total credit line fm various banks:$5b. Bal line $1.3b)
Therefore net worth: $300,000.
Still can use the bal. line of $1.3b to pay $1b losses.
Makes sense?
Not entirely but close to actual scenario becos his actual net worth & actual losses as reported may not be entirely accurate in the first place

So he's now bankrupt? Owe $4.7b but has only $4b assets?

 

[2lanu]

Another GIC investment going to bite the dust...

 

[saratogas]

Rich businessman can sue bank for losses, can we sue Temasek for their losses on our $$$ too?

 

[Yoshitei]

This is not the first time Citigroup gets sued.

Several years ago, the fought a case with a divorced lady working in Goodyear Singapore. They briefed all staff that their position was strong and that they'll win.

If I remembered correctly, they ended up compensating that lady for 3/4 of her losses with the bank.

 

[wizard]

He should said the 1 B is for LKY school as the school need upgrade now since he last donated from his profit from AIG.


carry balls lahh..l. see wat happen

 

[Yoshitei]

He should said the 1 B is for LKY school as the school need upgrade now since he last donated from his profit from AIG.


carry balls lahh..l. see wat happen

He's not that sort.

In fact, he had a disagreement with our Government and it's runner when he made a bid to purchase a steel manufacturer a couple of years back.

 

[2lanu]

The best biz around is the one that linked to the GLC. Good time bad time they still got pay handsomely. And still they want ppl to respect the shit they did.

 

[kulgai]

So he's now bankrupt? Owe $4.7b but has only $4b assets?

If all the banks decide to take action, then YES he's a goner. If not, he can still bounce back.... not a problem IMHO

 

[besotted]

Anyone got more details on this

Net worth and loss don't tally, no head no tail

 

[44mm]

i wonder if he is able to sleep well during this period of time.

If i lost just 100k i goona go crazy!!!

 

[SamuelStalin]

Welcome to the 2nd Great Depression!

If Temasek can't recoup their billions in losses from the big time Mafioso type criminals on Wall Street & the District of Criminals, how can Mr. Oei claim his losses from the same bunch of legalized criminals? It's a dog eat dog world. The bigger dogs eat the smaller dogs. The smaller dogs eat the peasants. The peasants eat Hawker Centre foods & Maggi mees. That's how the survival of the fittest & evolution works.

So handsome with such an enlightening discourse which social strata do you therefore belong to?

 

[Kuailan]

Home > Breaking News > Singapore > Story
May 19, 2009
Oei sues Citigroup

Businessman claims bank gave him an inaccurate picture of his trading exposure
By Lee Su Shyan, Assistant Money Editor

Mr Oei claims the bank sent him conflicting reports on his exposure. -- ST PHOTO: WANG HUI FEN

LOCAL businessman Oei Hong Leong - dubbed the 'man with the Midas touch' - lost a whopping $1 billion on foreign exchange and US Treasury bond transactions last year.

While he has fully paid off these losses, he is now suing Citigroup's private banking arm in the High Court for negligence and misrepresentation, legal documents seen by The Straits Times reveal.

Mr Oei claims that the bank - with which he has a 30-year relationship - repeatedly gave him an inaccurate picture of his trading exposure, causing him to take on more positions than he would have otherwise done so.

When he knew the full extent of his exposure, he felt he had no choice but to close his positions - at an extremely volatile time last October - thus suffering massive losses.

It is not clear how much of a beating Mr Oei's net worth has taken, but he was ranked Singapore's 29th richest man by Forbes last year with a net worth of only US$210 million (S$308 million). Forbes bases its listing on stakes in publicly traded companies and in private company filings.

Ironically, Mr Oei has become the latest high-profile victim of the financial crisis because he was trying to reduce his exposure.

In 2007, he believed that the global economy would experience a downturn and decided to trim his trading positions, his statement of claim says.

Meanwhile, he told his private bankers that he wanted to maintain a margin surplus of about US$100 million.

This is cash placed with a bank and clients can trade up to several times that amount. If the trades run up losses, this margin has to be topped up.

Following a change of relationship manager last year, Mr Oei dealt mainly with two assistants in the private banking department, whom he would call to check on the balance on a daily basis.

Read the full story in The Straits Times today.

[email protected]

He sure look like the comedian "Yah Fong"
remember Wang Sar & Yah Fong the two comedian?
Both now lived in another planet.